Supreme Court of the United States

Burlington Northern Railroad Co. v. Woods

February 24, 1987480 U.S. 1

Summary

Justice Marshall delivered the unanimous opinion holding that Alabama’s mandatory 10% affirmance penalty does not apply in federal diversity actions. Federal Rule of Appellate Procedure 38 gives appellate courts discretion to award damages for frivolous appeals, directly conflicting with the state statute’s mandatory penalty for unsuccessful appeals. Rule 38 validly regulates procedure under the Constitution and the Rules Enabling Act and therefore displaces the state statute. The Court reversed the judgment imposing the penalty without reaching the equal protection and due process challenges. There were no separate opinions.

Holding

  • Whether Alabama’s mandatory affirmance penalty applies in federal diversity actions.. Alabama’s mandatory affirmance penalty statute does not apply to judgments entered by federal courts sitting in diversity.
  • Whether Rule 38 validly displaces the Alabama statute.. Rule 38 satisfies both the constitutional standard for procedural rules and the Rules Enabling Act’s prohibition against abridging, enlarging, or modifying substantive rights.

Docket 85-1088

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